I think that's apocryphal; https://news.ycombinator.com/item?id=9961530 suggests so anyway. The cause is probably the same; $1 is seen as an irrelevant amount of money by most people.
Even so, you compare very different things, and the result is not terribly informative.
If you can pay 100¢ for a 3-4 minutes of street performance, can't you pay 99¢ (or less) for 3-4 minutes of a high-quality recording which you can listen to as much as you like?